A $121 million unlawful foreclosure practices settlement has been reached between large bank mortgage processor Lender Processing Services Inc. and the attorneys general from 46 states and the District of Columbia.
LPS is required to pay out $127 million to plaintiffs to resolve allegations the Jacksonville, Fla.-based company “robo-signed” documents and engaged in other improper conduct related to mortgage loan default servicing.
The settlement prohibits signatures by unauthorized persons or those without first-hand knowledge of the facts attested to in filed documents, enhances oversight of the default services provided, and requires review of all third-party fees to ensure that the fees have been earned and are reasonable and accurate.
“Today’s settlements are another major step toward putting issues related to past business practices behind us,” said LPS President/CEO Hugh Harris. The company, which claims the majority of the 50 largest banks in the U.S. as its clients, is working through additional lawsuits.
On Jan. 28, 2013, LPS also settled the securities fraud litigation brought by St. Clair Shores General Employees’ Retirement System, subject to entry of a final order by the federal district court. Additionally, in December 2012, LPS resolved litigation filed by American Home Mortgage Servicing Inc. “We look forward to favorably resolving our remaining regulatory and legal issues in the near future,” Harris said.
Once the judgment is entered by the courts, LPS will undertake a review of documents executed during the period of Jan. 1, 2008, to Dec. 31, 2010 to determine what documents, if any, need to be re-executed or corrected.
If LPS is authorized to make the corrections, it will do so and will make periodic reports to the attorneys general of the status of its review and/or modification of documents.
Consumers may call LPS and request review and correction of any documents executed by LPS during any time period.